1. 1 New York University School Of Medicine Grant Management Improving Timeliness and Accuracy of Cost Allocations May 2005

2. 2 Grant Management? Principal Investigator (PI) has grant “A”, which terminates 9/30, as well as a discretionary account Principal Investigator (PI) has grant “A”, which terminates 9/30, as well as a discretionary account PI receives a new grant “B”, which begins 7/1 PI receives a new grant “B”, which begins 7/1 Research costs continue to be charged to grant “A” despite some of the costs relating to new grant “B” Research costs continue to be charged to grant “A” despite some of the costs relating to new grant “B” The laboratory becomes very active, and timely cost allocations are not performed The laboratory becomes very active, and timely cost allocations are not performed The PI initiates stop-gap transfers to “B” and the discretionary account, but not enough to avoid a deficit The PI initiates stop-gap transfers to “B” and the discretionary account, but not enough to avoid a deficit

3. 3 Grant “A” terminates in deficit, now forcing hard look at what can be transferred out Grant “A” terminates in deficit, now forcing hard look at what can be transferred out To properly reconcile, grant “A” charges needs to be fully identified and allocated To properly reconcile, grant “A” charges needs to be fully identified and allocated PI now needs to examine who was charged to each grant, for what period, and the functions they performed PI now needs to examine who was charged to each grant, for what period, and the functions they performed Retro-active transfers processed involving all accounts Retro-active transfers processed involving all accounts Grant Management? (Cont’d)

4. 4 Grant “B” is now due to terminate 6/30 and research is soon to be completed Grant “B” is now due to terminate 6/30 and research is soon to be completed PI goes on vacation PI goes on vacation Upon PI’s return, in August, FA is looking for assistance to balance out and report on “B”, due September 30th Upon PI’s return, in August, FA is looking for assistance to balance out and report on “B”, due September 30th PI now wants to transfer costs off of the discretionary account to Grant “B” PI now wants to transfer costs off of the discretionary account to Grant “B” The cycle continues The cycle continues

5. 5 AWARDAWARD Research, Financial & Programmatic Management Timely Reporting Completed Research, Less Financial & Programmatic Management Material Adjustments Required Late Reporting Budget Year Compliant Reporting Window Non-Compliant Reporting 90 Days Grant Management Scenarios Less Than Ideal Ideal Timeline Beyond 90 Days

6. 6 Utilization of Cost Transfers Cost Transfers Unexpected Late Charges Routine Allocations Slow Response to Issues Temporary Salary Transfer Lapse in Financial Analyst coverage Untimely Grant Review Late Award and Account Set-Up Lack of Interdepartmental Cooperation Untimely P-Card Allocation Insufficient Compliance Knowledge NOTE: Must be timely to be acceptable

7. 7 Ensuring Timely Cost Allocation  Expedited account set-up and authorization with the Sponsored Programs Office(SPA)  Merged restricted funds accounting with financial analyst(FA) group to promote system redesign  Instituted bi-monthly forecasts, improved coverage among FA’s, online CPP’s, and utilization of grant spending report for billing  Focus group meetings with departmental administrators  Help involve PI’s in grant administration  Assist in getting PI to act proactively  Offer more PI training

8. 8 Ensuring Timely Cost Allocation Phase II – We Need Your Assistance! Restrict/Limit use of cost transfers Restrict/Limit use of cost transfers Federal guidelines state cost transfers MUST be processed within 90 daysFederal guidelines state cost transfers MUST be processed within 90 days Non-compliance could result inNon-compliance could result in Loss of privileges such as StaplesLink and P-CardsLoss of privileges such as StaplesLink and P-Cards PI having to cover costs from other fundsPI having to cover costs from other funds Forfeiture of grant balances(referenced in cost transfer)Forfeiture of grant balances(referenced in cost transfer)

9. 9 Projected Spending Report Graph